OMP 105 / MMP 104:

Distribution and Logistics Management

Module Test III

I. Multiple Choice.

_____ 1. It is a marketing channel system that involves analyzing customer's needs, establishing channel objectives, and identifying major channel alternatives.

a. Channel Conflict c. Channel Leader

b. Channel Design d. Channel Management

_____ 2. It is a dispute among channel members

a. Channel Conflict c. Channel Design

b. Channel Control d. Channel Management

_____ 3. Resellers are in business to make money so a key factor in their decision to

handle a product is how much money they will make on each product sold.

a. Delivery c. Profit Margin

b. Packaging d. Training

_____ 4. Resellers want the product delivered on-time and in good condition in order to

meet customer demand and avoid inventory out-of-stocks.

a. Delivery c. Profit Margin

b. Packaging d. Promotional Help

_____ 5. It is the power to determine, adjudicate, or otherwise settle issues or disputes; jurisdiction.

a. Authority c. Control

b. Coercion d. Persuasion

_____ 6. It refers to the growth of the employee in an organization and the various positions an employee moves to as he grows in an organization. Involves unjustifiable punishments, strongly worded communications, threats, etc. that undermines the freedom of the channel member. In these circumstances, the channel member will naturally try to either retaliate or decide to break the relationship.

a. Authority c. Control

b. Coercion d. Persuasion

_____ 7. It is the ability of a channel member to control marketing variables of any other member in a channel at a different of level of distribution.

a. Channel Control b. Channel Design

c.Channel Position d. Channel Power

_____ 8. It is the reputation a manufacturer acquires among distributors for furnishing products, services, financial returns, programs, and systems that are in some way superior to those offered by competing manufacturers.

a. Channel Control c. Channel Position

b. Channel Design d. Channel Power

_____ 9. It is an important source of power in the channel management context. This power motivates a channel member to comply with the directions of the possessor of the reward.

a. Expert Powerc. Referent Power

b. Legitimate Power d. Reward Power

_____ 10. It is often based on a legal contract and prevalent in contractual distribution channels.

a. Expert Powerc. Referent Power

b. Legitimate Power d. Reward Power

II. Matching Type.

a. Avoidance Strategy

b. Backend or Product Power

c. Channel Conflict

d. Channel Design

e. Channel Leader

f. Channel Roles

g. Coercive Power

h. Collaborative Strategy

i. Compromise Strategy

j. Conflict Management

k. Felt Conflict Stage

l. Front or Retailer Power

m. Horizontal axis

n. Institutional Mechanisms

o. Manifest Conflict Stage

p. Middle or Wholesaler Power

q. Negotiation

r. Negotiation Strategies

s. Strategic Influence

t. Structural Causes of Conflict

u. Training

v. Vertical axis

_____ 1. It represents the profits obtained by the channel member from doing business with the channel principal.

_____ 2. It denotes the authority or control of the channel principal where authority increases from left to right.

_____ 3. These are easier to understand and detect since they are often based on tangible and well-articulated causes.

_____ 4. This tries to prevent disagreements and other problems to reach the stage of manifest conflict.

_____ 5. It is a process where the parties to the dispute set down mutual rules of engagement and work within these rules to achieve competitive advantage over the other party.

_____ 6. These are patterns of behavior used by parties during the negotiation process to resolve conflicts.

_____ 7. This power can be viewed as the "flip-side" of reward power.

_____ 8. This occurs when a product manufacturer or service provider markets a brand that has a high level of customer demand.

_____ 9. This occurs when an intermediary services a large number of smaller retailers with products obtained from a large number of manufacturers.

_____ 10. This type of power is most prevalent when the retailer commands a significant percentage of sales in the market they serve and others in the channel are dependent on the sales generated by the retailer.

_____ 11. Inthis strategy, theparties decide toscale down theirinterests to a reasonable level so that the final solution is acceptable to both the parties.

_____ 12. This strategy entails searching for alternate solutions and assessing the outcomes of each alternative for both the parties. There is an earnest effort to consider each other's goals as well to work towards win-win solution.

_____ 13. The idea is to prolong the negotiation by escaping real issues and discuss unimportant issues that are of no consequence.

_____ 14. This must be offered by marketers to resellers to ensure that the reseller has the knowledge to present the product accurately.

_____ 15. These are formal institutional set-up with a well-established framework of operation. They are mostly capable detecting conflict in its initial stage and prevent it from escalating to its manifest stage.

_____ 16. These are defined as a set of prescriptions defining what the behavior of a member should be in a particular position.

_____ 17. In this stage, the members really feel the conflict in terms of frustrations, disappointments, or negative feelings towards the relationship.

_____ 18. This is characterized by destructive actions like a boycott or total breakdown of communication, etc. where some expressed behavior is involved.

_____ 19. It is the organization which takes the lead in setting channel-wide objectives and has the responsibility of marshalling the recourses of the channel in order to achieve these objectives.

_____ 20. It is theart of planningand establishing influenceamong the public, customers, potential customers or employees.